News Trading: How to Read & Analyze News for Trading

Learn how to read and interpret financial news, and get insights on how to trade news events.

News trading is a strategy that requires real-time news, lighting fast interpretation, and the ability to make stock trades quickly. Trading news can be profitable, but the speed of reaction, analysis, and newsfeed quality is key.

One of the most important things you can do when it comes to day trading is to stay up to date on the latest news. After all, news can have a big impact on the markets and can even provide profit opportunities.

But how do you trade the news? And more importantly, how do you read the news to make money from it?

News Trading: How to Read & Analyze News for Trading
News Trading: How to Read & Analyze News for Trading

What is news trading?

News trading is the act of making a trade based on news events. This can be anything from economic data releases to political news. The key with news trading is identifying which news events are likely to have the biggest impact on the markets and then making trade accordingly.

What is trading the news?

Trading the news is a quickfire style of stock trading, in which the trader seeks to interpret the financial markets’ newsfeed and initiate short-term trades to take advantage of profitable situations. Depending on the news, traders are typically ready to go long or short on stock.

How to read news for trading

When it comes to news trading, you must know how to read the news to make money from it. Here are a few tips:

  1. Look for news that is likely to have a big impact on the markets. This includes news about economic data releases, political events, and anything else that could move the markets.
  2. Pay attention to the tone of the news. If a news story is positive, it could mean that the markets will go up. If a news story is negative, it could mean that the markets will go down.
  3. Be sure to check the source of the news. Not all news sources are created equal. Some news sources are more reliable than others.
  4. Take news with a grain of salt. Just because a news story comes out doesn’t mean that it will have a big impact.

How to analyze news for trading

When analyzing news for trading, it is important to stay up-to-date on big news events, use unbiased news sources and categorize news on importance and impact. Here a four key tips for analyzing trading news.

  1. Stay up to date on the latest news. This might seem like a no-brainer, but it’s important to have a source of information that you trust. Whether it’s a website, a TV show, or even just following certain accounts on social media, make sure you’re getting your news from a reliable source. This will help you make informed decisions about the world around you.
  2. Learn how to analyze news. Not all news is created equal. For example, some news might be more important than other news. And some news might be more positive or negative than other news. Learning how to quickly and accurately analyze news will help you make better decisions when trading the markets.
  3. Read between the lines. Sometimes, the way a piece of news is reported can be just as important as the news itself. Pay attention to the tone of the coverage and look for any possible bias. This will help you better understand how the markets might react to a particular piece of news.
  4. Use news as one of many factors in your trading decisions. Never make a trade solely based on news. Instead, use it as one tool in your overall analysis. And always remember to use stop-losses and other risk management tools to protect your profits.
Benzinga Pro News Platform Categorizes News Important & Impact for You
Benzinga Pro News Platform Categorizes News Important & Impact for You

Where to get news for day trading

There are numerous sources of news that can be used to inform trading decisions. However, not all news is created equal. Some news sources are more reliable than others, and some news sources may be more biased toward certain companies or industries.

When analyzing news for trading purposes, it is important to consider the news source. A news source known for being accurate and unbiased is likely to be a better source of information than a news source that is less well-known or has a reputation for being biased.

In addition to considering the source of the news, it is also important to analyze the content of the news itself. Not all news stories will impact the markets and not all news stories.

The Best Day Trading Newsfeeds & Apps

The best day trading newsfeeds and apps are Benzinga Pro, MetaStock R/T Refinitiv, Reuters Eikon, and the Bloomberg Terminal. Each comes with different features and price points.

If you are trading news by investing in stocks as soon as the news is released, thereby gaining a short-term swing in the stock price, then you need to pay for a real-time news subscription. Your online broker may also provide real-time news included with your service; see our review of the top 10 real-time news and analysis sources.

Trading the news can be profitable, but there is a cost to that profit, and that cost is a premium subscription to a real-time financial news feed. Four key news agencies produce, report, and broadcast real-time news.

Benzinga vs Bloomberg vs Reuters Eikon vs Xenith

News Service Benzinga Pro MetaStock R/T Refinitiv Reuters Eikon Bloomberg Terminal
Real-time News
Price /month $117* $250* $1,833** $2,000**
Price /year* $1,440 $3,000 $22,000 $24,000
Powerful Chart Analysis
Dedicated Hardware No No No Yes
Visit News Service Benzinga MetaStock Refinitiv Bloomberg

Table 1: Benzinga vs. Bloomberg vs. Reuters Price Comparison *North America Data **Global Data

As you can see, in terms of pricing for real-time news Benzinga Pro is half the price of its nearest competitor MetaStock Refinitv. However, MetaStock Xenith does come with very powerful stock chart analysis, backtesting, and forecasting.

So you can see that for North American traders, Benzinga is 1/10th of the cost of a Bloomberg Terminal or Thomson Reuters Eikon service.

Visit Benzinga Pro Benzinga Pro Review

Examples of news events that impact stock markets

The news can have a big impact on the stock market. Political news, for example, can cause uncertainty and make investors sell stocks. Other news, like positive economic reports, can cause investors to buy stocks.

When analyzing the news, it’s important to look at how it will affect different companies and sectors. For example, a trade war could hurt export-oriented companies, while increasing tariffs on imported goods could be good for domestic producers.

Looking at the news in this way can help you make better investment decisions. By understanding how news events affect different companies and sectors, you can buy or sell stocks based on your analysis. This can help you make money in the stock market.

Buy the rumor, sell the news.

“Buy the rumor and sell the news” is a common trading strategy many professional traders use. This strategy aims to buy into a rumor before it is officially announced and then sell once the news is made public. This can be a lucrative strategy if executed correctly, as you can profit from the price difference between when you bought in and when you sold.

However, it is important to note that this strategy carries a higher risk than others, as there is always the potential for the news to be less favorable than expected.

If you consider using this strategy, there are a few things you need to keep in mind. First, it is important to pay attention to rumors and try to understand which ones are likely to pan out. There are many sources of rumors, so it is important to do your research and try to find the most reliable ones.

Second, you need to have an exit plan before entering into a trade. This means knowing what price you will sell at if the news is good and having a stop-loss in place if the news is not as favorable as expected.

Finally, it is important to remember that this strategy carries a higher risk than others, so you should only use it with money you are comfortable losing.

If you follow these guidelines, news trading can be a profitable strategy. Remember to pay attention to rumors, have an exit plan, and don’t risk more than you are comfortable with.

Insider trading news

If you’re interested in following the news on insider trading, you should know a few things. First, it’s important to be able to analyze the news and not just take it at face value.

There are a lot of news sources out there, and not all of them are equally reliable. It’s important to be able to critically evaluate what you’re reading before making any decisions based on the information.

Second, it’s also important to keep up with the latest news. The world of insider trading is always changing, and new information can come to light at any time. By staying up-to-date, you’ll be better positioned to make informed decisions about your own trading activity.

Configuring Your Benzinga Newsfeed for insider Trading News
Configuring Your Benzinga Newsfeed for insider Trading News

What is a good strategy for trading financial news?

A good strategy for trading financial news is to be aware of the release schedule for economic data and monitor the markets in the lead-up to these releases. By doing this, you can anticipate how the market is likely to react to the release of certain data and position yourself accordingly.

In addition, it is also important to pay attention to the overall trend in the market. If you see that the market is generally trending upwards, then it is more likely that positive news will have a strong impact and push prices higher. Conversely, if the market is trending downwards, negative news is more likely to cause prices to fall.

Finally, it is also important to remember that not all news events are created equal. Some data releases are more important than others and will have a greater impact on prices. As such, it is important to pay attention to the market reaction to different news events and use this information to help you make better trading decisions.

Can you trade news and make money?

The short answer is yes, you can trade news and make money. However, it’s not as simple as just buying or selling whenever there is news. You need to analyze the news and understand how it will impact the markets before you make any trades.

If you’re just starting out, we recommend that you don’t try to trade news. It can be very confusing and complicated, and it’s easy to make mistakes that can cost you money. Instead, focus on learning how to trade without using news. Once you understand the markets and how they work, you can start incorporating news into your trading strategy.

Trading the News Summary

If you follow these guidelines, news trading can be a profitable strategy. Remember to pay attention to rumors, have an exit plan, and don’t risk more than you are comfortable with.

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